7 Revenue and expense data for Reuters Company are as follows: Administrative expenses Cost of goods sold Income tax Net sales Selling expenses 2017 $24.750 500,000 11,600 750,000 182.250 2016 $18,000 375,000 12,000 600,000 154,800 a Prepare a comparative income statement, with vertical analysis, stating each item for both 2017 and 2016 as a percent of sales. Reuters Company Comparative Income Statement For Years Ended December 31, 2017 and 2016 2017 2018 Net sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax Income tax Net income b Comment upon significant changes disclosed by the comparative income statement 8 The following data are taken from the financial statements: Net sales Cost of goods sold Average monthly inventory Inventory, end of year 2019 $3.592.000 2,092,000 332,000 372.000 2018 $4.056,000 2,656,000 328,000 347,000 a. Calculate the inventory turnover ratio for both years. b Calculate the number of days it is taking to sell the inventory for both years. c. What can you conclude about your calculations